Us bitcoin etfs pull in $871mn in first three days of trading
Grayscale has outflows of more than $1.1bn as investors turn to BlackRock and Fidelity for new crypto products.
Bitcoin exchange traded funds have pulled in just under $900mn in the first three days of trading, as investors cautiously welcome the new stock market vehicles that track the cryptocurrency.
The new funds, which include those from BlackRock, Franklin Templeton and Invesco, have had net inflows of $871mn, according to data from CoinShares, a digital asset manager.
BlackRock, the world’s largest asset manager, led the way with $723mn of inflows, followed by Fidelity with $545mn. The inflows were offset by $1.18bn of outflows at Grayscale, which converted its existing $28bn bitcoin fund into an ETF alongside the new launches.
Analysts believe the bulk of the outflows is likely to be investors moving to one of the new funds, which all charge lower fees than Grayscale. Excluding the outflows at Grayscale, the 10 new ETFs have drawn in just over $2bn.
Crypto enthusiasts celebrated the approval of the funds by the US Securities and Exchange Commission last week after more than a decade of rejections. Supporters hope it will attract new investors to the token and boost its price in the long term.
Growing speculation that the SEC would approve so-called spot bitcoin ETFs had pushed the price of bitcoin up more than 70 per cent since October. However, bitcoin has fallen roughly 6 per cent since their approval.
